Company

Organic Market TrendsChallengesOptions

FinancialsRecommenda

tion

Company

Founded on 1989

Manufacturer & Marketer of refrigerated cup yogurt.

Differentiators

Natural Ingredients.

Longer shelf life.

Reputation for high quality & good taste.

Strong Brand.

Effective low cost “Guerrilla Marketing”.

National distribution in natural food channel.

Strong relationship with distributors.

Yogurt

Concentrated: 4 competitors control over 50% share.

Supermarkets: 97% of total sales (3% annual growth).

Natural Food Stores: 97% of total sales (20% annual growth).

Factors in purchasing decision: Package type/size, flavour, freshness, price, ingredients, organic.

Identify path to grow

revenue by over 50%

within 23 months.

Attain the highest possible valuation in order to

secure new investors or position itself for

acquisition.

Problem: To expand into supermarket channel or not

The Big Question:

The 2 Channels to sell productNatural Food StoresSupermarkets

Available Options

Expand SKU’s of the 8-oz product line into one or two

supermarket channel regions.

Concentrated: 8 –oz cups represent largest dollar & unit share of market.Supermarkets fear losing market share to natural food competitors.First-mover advantage.They may authorize only 1 organic yogurt manufacturer.Other food brands expanding to supermarkets.

Highest level of marketing expenditure.Possible channel conflictPromotion of lower price at supermarkets may hurt the brand.No experience in supermarket chain.Balance between shelf presence & slotting expenses.

Expand SKU’s of the 32-oz product line nationally.

32-oz cup generate above average gross profit margin.Fewer competition in this size.Long shelf life of product.Lower promotional expense.

Higher slotting fees.National distribution challenging within 12 hours.No guarantee of growth.Possible channel conflict.Promotion & lower price may hurt the brand.

Expand 2 SKU’s of a children’s multi-pack into the

natural food channel.

Strong relation with leading natural food chain retailers.More time to prepare the company to move into supermarkets.Company’s positioning ideal for given proposal.Financially attractive.Low sales & marketing expenses.High margins.

Fast growth of natural foods channel will lead demands equal to those of supermarkets.Miss opportunity to enter supermarkets before competitors.

Financials

Only a regional distribution instead of national, which makes it easier to implement.

Higher slotting fee but more visibility of the product.

Competitors moving into supermarkets, te first mover advantage will be lost later.

CompanyDifferentiatorsSuccess Factors.Organic/Natural Market TrendYogurt Market TrendChallenges & GoalsOptions AvailablePros & Cons of each option.Financials of each optionRecommendation (Option 1)